| ABC News | - |
Relieved
investors sent stocks sharply higher Tuesday after Russia pulled troops
back from the border of Ukraine. The rally erased steep losses from
Monday caused by fears an escalating conflict.
Stocks Surge as Tensions Ease in Ukraine
Relieved investors sent stocks sharply higher Tuesday after Russia
pulled troops back from the border of Ukraine. The rally erased steep
losses from Monday caused by fears an escalating conflict.
KEEPING SCORE: The S&P 500 index was up 23 points, or 1.3 percent, at 1,868 as of 2:04 p.m. Eastern time Tuesday.
The Dow Jones industrial average rose 192 points, or 1.2 percent, to
16,360. The Nasdaq composite rose 65 points, or 1.5 percent, to 4,343.
Five stocks rose for every one that fell on the New York Stock Exchange.
RELIEF RALLY: The volatility comes after the S&P 500 closed at a
record high on Friday, then posted its biggest decline in a month on
Monday. That has left investors trying to figure out whether stocks are
overvalued or whether they reflect an improving economy.
WHAT'S AN INVESTOR TO DO? "I think maybe you take a powder. Maybe take
some positions off the table, and you hedge yourself a little but, for
the chance that if it does go the other way and there is a downturn,"
said Stephen J. Carl, head equity trader at The Williams Capital Group.
GOING FOR RISK: Bond and gold prices fell as traders moved money out of
safe-play assets. The yield on the 10-year Treasury note rose to 2.68
percent from 2.60 percent late Monday.
ENERGY PRICES: Oil prices also fell as the immediate threat of economic
sanctions on Russia, a major oil exporter, eased. Traders had also been
worried about transportation disruptions in the Black Sea, a major
transit point for oil.
SECTORS: All 10 industry groups in the S&P 500 rose, led by health care, industrial and financial stocks.
WORLD MARKETS: Stock markets in Europe, including Moscow, and Asia
recouped much of Monday's losses. Indexes in France and Germany each
rose 2.5 percent, and the FTSE 100 in Britain rose 1.7 percent.
THE SHACK PARES BACK: RadioShack Corp. plunged 48 cents, or 18 percent,
to $2.24 after reporting a wider quarterly loss and saying it will close
as many as 1,100 stores.
BUYBACK BOUNCE: Chipmaker Qualcomm rose $3.10, or 4 percent, to $76.73
after announcing a 20 percent increase in its quarterly dividend and
adding $5 billion to its stock buyback program. Buybacks generally
benefit shareholders because they increase the value of remaining
shares.
PENNEY GAINS: J.C. Penney Co. rose 54 cents, or 7 percent, to $8.50
after Standard & Poor's raised its outlook on the retailer's debt,
saying Penney's performance "has begun to stabilize." Last week Penney
posted its first gain in two years at stores open at least a year.
DELTA TAKES OFF: Delta Air Lines rose $1.63, or 5 percent, to $34.22
after reporting strong February domestic demand and passenger revenue.
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